Tether has invested $20 million in Ualá, a leading Argentine neobank, marking a significant move in the company’s strategy to expand its reach in Latin America.
Investment details
Ualá included Tether’s participation in a $197 million equity funding round that closed in March, with Allianz X as the lead investor. Although Ualá publicly named Tether as an investor at the time, the exact sum was not disclosed. Bloomberg has now reported that Tether contributed $20 million to the round.
Tether is known for issuing USDt (USDT), the world’s largest stablecoin with a market capitalization of $184.4 billion, as reported by CoinMarketCap.
Ualá, established in 2017, offers digital banking services to millions of users in Argentina and has expanded its product line to include savings accounts, investments, and cryptocurrency trading.
Mini dictionary: Ualá is a prominent Argentine neobank that provides mobile banking services, facilitating payments, savings, and currency exchange for millions of users in Latin America.
Tether’s $20 million investment in Ualá highlights the growing focus on digital financial infrastructure in Latin America, with neobanks and stablecoin issuers seeking to strengthen regional operations through strategic funding.
Tether’s regional strategy
The $20 million investment in Ualá comes just weeks after Tether announced a similar-sized commitment to Mercado Bitcoin, a major Brazilian crypto exchange. That investment aims to support the expansion of onchain technological infrastructure across the region.
In addition, Tether led a $14 million Series A funding round in April for Belo, another Argentine crypto platform. Other participants in that round included Titan Fund, The Venture City, Mindset Ventures, and G2, as well as existing investors.
These moves are part of Tether’s broader plan to strengthen its footprint in burgeoning Latin American economies by investing directly in financial technology firms and cryptocurrency platforms.
| Company/Platform | Country | Investment Date | Investment Amount |
|---|---|---|---|
| Ualá | Argentina | March 2024 | $20 million |
| Mercado Bitcoin | Brazil | July 2024 | $20 million |
| Belo | Argentina | April 2024 | $14 million |
Tether overview
Tether serves as a key issuer of USDT, currently the largest stablecoin in circulation. The company’s stablecoin facilitates USD-pegged transactions and is widely adopted across crypto exchanges worldwide.
With these new investments, Tether is focused on reinforcing the adoption of stablecoins and digital banking within Latin America, a region where regulatory developments and economic instability have spurred demand for alternative financial services.
Ualá’s latest funding round, which raised a total of $197 million, demonstrates continued investor interest in fintech and digital finance across Argentina and the broader region.
Tether has not yet publicly commented on the reported $20 million investment in Ualá.
